- No
one can forecast which way the market
will move.
- You
can be your own worst enemy by acting on
instinct - develop a strategy and stick
with it.
- Invest
with a goal so you know your time
horizon, and thus how much risk to take.
- Keep
focused on your overall portfolio
performance, rather than how an
individual investment is doing. This may
help weather market ups and downs.
- Take
advantage of any tax-deferred plans you
have access to, such as 401k, 403b, or
IRA's. Especially take advantage of 401 k
plans where your employer might match
contributions. This is FREE money!
- Keep
investment costs low - shop for a
discount broker.
- Your
core portfolio should be in mutual funds
- then as you learn and your investments
begin to grow start looking at individual
stocks.
- Your
investments should be diversified -
across investment styles, and industries.
- Write
down your investment philosophy - this
will help you keep focused on what it is
you are trying to accomplish. It will
also help you avoid acting out of
emotion.
- NEVER EVER invest in
something you don't understand.
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